Despite the bearish momentum of the cryptocurrency market for most of 2018 until now, the Bitcoin mining hash rate and difficulty level continued to increase. But, now it appears that crypto mining sector is feeling the pinch after the recent crash in the cryptocurrency prices.
According to the data from Blockchain.com, the difficulty to mine bitcoin and the hash rate has both declined by over 15 per cent, the second biggest drop in history. The first massive drop is of 18 per cent, happened in 2011.
#Bitcoin just had its second largest drop in mining difficulty in history: -15.1%. This is the current ranking:
— Fernando Ulrich (@fernandoulrich) December 3, 2018
Hash rate is the total computing power of a blockchain network and difficulty level refers to the ease by which miners discover a new block. The major reason behind this trend is due to the recent crash in crypto prices which have resulted in miners going offline as they are not able to generate enough profits for sustained operations.
The drop in hash rate and difficulty level means miners are now able to find solutions for the next new block at much ease and a lot more profitable to mine bitcoin compared to BCH and BCH SV. The reduction in hash rate and the difficulty level of the network is as per the design which is adjusted after every 2016 block.
According to Mao Shixing of F2Pool, the fourth largest BTC mining pool, after the mid-November crash, more than 800,000 miners have shut down their operations. At lower difficulty, now miners can re-enter the space and mine Bitcoin at a much lower cost.
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